Increasing Gas Prices?

Question

I know that for a while gas has been increasing rapidly to record high prices. But I'm not really informed as to why this is so. In some countries throughout Europe, the prices are 3-4 dollars higher than the US, but down in Mexico, they're about 2 dollars less than the US. Why is this so? I've heard that it is because the amount of fossil fuel left in the world keeps decreasing and decreasing, but a few months ago, gas prices when down almost to 1.99 a gallon (but they rose back up of course). Why could this happen but isn't happening now?

In Mexico, gas prices are controlled by the government. Why isn't the US doing this as well?

Mind me, I'm young and not well informed about the economy.

Thank you!

Answer 1

The poor command of economic realities is evident in most of the answers here already: All this whining about corporate greed, and no allusions to personal responsibility for a culture that extols choosing a SUV with 10-12 mpg consumption illustrates this.

The rest of the world, as you note, pays vastly more than the US, and have adjusted their driving habits and vehicle choices apporpriately.  The US already gets refinery prices for fuels that are around 40% lower than places like Europe.

The US could never afford to subsidise fuel prices to those of somewhere like Mexico.  That takes massive taxes, and the US has far too many vehicles (and they are inefficient by world standards)  to subsidise.

Answer 2

Mainly because Gas companies are greedy. But it is a supply and demand thing. The demand in the US, Europe and Asia are higher than Mexico (at least that is what I think not totally sure) and the supply is low. When and where did Gas go down to $1.99 I don't remember that price not for a few years anyway. But like I said with a billion dollar profit that the gas companies have made they are definelty being flat out greedy. Now they are even trying to get lower taxes so they don't have to pay them but they will never lower the actual price of gas.

Answer 3

The value of the US dollar is dropping, so one dollar gets you less of everything, investors buy oil stocks in order to avoid money, which raises the price further.

Answer 4

It's all corporate greed, they are always making up excuses to keep gas prices high & raise them hugher. Everything from Katrina (Which is long over with) to fires at refineries to war/ Attack on oil wells in Kuwait. They even are doing the same c**p with natural gas prices which has NOTHING to do with oil. It's all corporate greed.